Owens ning(OC) - 2024 Q4 - Annual Results

Financial Performance - Owens Corning reported full-year net sales of $11.0 billion, a 13% increase from the prior year, with the newly acquired Doors business contributing$ 1.4 billion in revenue[4]. - The company generated net earnings of $647 million, resulting in a net earnings margin of 6%, and an adjusted EBIT margin of 19% for the full year[4]. - Adjusted EBITDA for the year was$ 2.7 billion, reflecting a 17% increase compared to 2023, with an adjusted EBITDA margin of 25%[4]. - Free cash flow for 2024 was $1.2 billion, with 51% of this amount, or$ 638 million, returned to shareholders through dividends and share repurchases[4][6]. - In the fourth quarter, Owens Corning achieved net sales of $2.8 billion, a 23% increase year-over-year, with an adjusted EBIT margin of 15%[12]. - For the full year 2024, net sales totaled$ 10,975 million, a 13.4% increase from $9,677 million in 2023[26]. - The diluted earnings per share for the full year 2024 was$ 7.37, down from $13.14 in 2023, reflecting the impact of the net loss in Q4[26]. - Adjusted diluted earnings per share attributable to Owens Corning common stockholders for 2024 was$ 15.91, compared to $14.42 in 2023, reflecting a year-over-year increase of 10.4%[31]. - Adjusted EBITDA for the full year 2024 was$ 2,702 million, representing 25% of net sales, compared to 24% in 2023, indicating stable operational performance despite challenges[28]. Segment Performance - Owens Corning's Roofing segment reported net sales of $4.1 billion in 2024, with an EBIT margin of 32%[11]. - The Roofing segment reported net sales of$ 4,052 million for 2024, a slight increase of 0.5% from $4,030 million in 2023[40]. - The Insulation segment achieved EBIT of$ 682 million in 2024, up from $619 million in 2023, marking a growth of 10.2%[41]. - The Doors segment generated net sales of$ 1,448 million in 2024, with EBIT of $99 million, reflecting a new revenue stream as it was not reported in 2023[42]. - Composites segment net sales for Q4 2024 were$ 515 million, a slight increase from $514 million in Q4 2023, but a 7% decrease year-over-year for the twelve months ended December 31, 2024, compared to$ 2,286 million in 2023[43]. - EBIT for the Composites segment increased to $47 million in Q4 2024 from$ 26 million in Q4 2023, with EBIT as a percentage of net sales rising to 9% from 5%[43]. - EBITDA for the Composites segment was $94 million in Q4 2024, up from$ 68 million in Q4 2023, representing 18% of net sales compared to 13% in the prior year[43]. Cash Flow and Investments - Net cash flow provided by operating activities for 2024 was $1,892 million, up from$ 1,719 million in 2023, indicating an increase of 10.1%[38]. - Free cash flow for the twelve months ended December 31, 2024, was $1,245 million, an increase from$ 1,193 million in 2023[47]. - Free cash flow conversion for the twelve months ended December 31, 2024, was 89%, compared to 91% in the previous year[48]. - Net cash flow provided by operating activities for Q4 2024 was $676 million, slightly down from$ 698 million in Q4 2023[47]. - The company plans to invest approximately $800 million in capital additions in 2025, with a focus on expanding manufacturing capacity for its laminate shingle portfolio[14]. Challenges and Risks - The company is facing risks including supply chain disruptions, inflationary pressures, and competitive pricing factors, which may affect future performance[23]. - The company incurred an impairment charge of$ 483 million due to a strategic review in Q4 2024, impacting overall financial performance[26]. - Total operating expenses surged to $1,041 million in Q4 2024, up from$ 286 million in Q4 2023, primarily due to impairment charges and losses on the sale of business[26]. - The company incurred a loss on the sale of business amounting to $91 million in 2024, which was not present in 2023[38]. Recognition and Awards - The company has been recognized as one of the top 250 Best-Managed Companies by the Wall Street Journal, ranking fourth in customer satisfaction[9].